(Alliance News) - Kingfisher PLC on Wednesday reported a decline in sales during a mixed first half for its retail units.
In the six months to July 31, revenue fell by 1.4% year-on-year to GBP6.00 billion from GBP6.08 billion. Pretax profit fell by 13% to GBP245.0 million from GBP280.0 million.
On a like-for-like basis, sales fell by 1.8%, with growth at UK trade tools provider Screwfix and in Kingfisher's operations in Poland and Romania offset by declines in France and at British DIY retailer B&Q.
Divisionally, sales in the UK & Ireland increased by 0.8% to GBP2.66 billion in the half-year from GBP2.64 billion, but like-for-like sales in the region fell by 0.7%. Screwfix's total sales rose by 9.9% to GBP882 million, but these gains were offset by a 3.3% decline at B&Q to GBP1.77 billion, Kingfisher reported.
In France, the company operates the Brico Depot and Castorama retail chains, which reported first half sales falls of 4.2% and 4.3%, respectively. Total sales in France declined by 4.8% to GBP2.16 billion from GBP2.27 billion.
In the Other International division, which includes Kingfisher's operations in Poland, Russia, Romania, Germany and the Iberian Peninsular, stayed broadly flat at 1.18 billion. Sales grew in Poland and Romania but fell in Russia and Iberia.
Kingfisher announced in November 2018 that it will pull out of Russia, Spain and Portugal to focus on the areas where it can "reach a market leading position". The company also closed all of its German Screwfix stores but maintains an online presence in the country.
The FTSE 100-listed firm held its interim dividend at 3.33 pence per share.
Looking ahead, Kingfisher said its outlook remains mixed and highlighted continued uncertainty in consumer demand in the UK.
Outgoing Chief Executive Veronique Luary said: "Our transformation activity continued in the first half of this year, including new range launches across the group and the rollout of further capabilities within our unified IT platform. These activities resulted in some ongoing disruption that impacted sales at B&Q and Castorama France.
"This was partly offset by positive sales performances in Screwfix, which continues to grow its market share, and Poland. It has been a great privilege to lead Kingfisher during a period of significant change, both in retail and within our business."
The company announced in June Laury will be replaced by Thierry Garnier, who formerly held various senior positions with French retail giant Carrefour SA.
Alasdair Ronald, an analyst at Brewin Dolphin, remarked about Kingfisher: "We are now in the fourth year of its transformation plan and the group has unified 59% of its products, but the new chief executive may introduce a different medium-term strategy. There is still the opportunity to generate further significant savings by standardising its product range, but recent French DIY market data is giving little cause for optimism. Combined with global economic uncertainties, this may well mean Kingfisher continues to face difficult trading conditions in the months ahead."
Shares in Kingfisher were 1.2% lower at 199.00 pence each in London on Wednesday morning.
Kingfisher (KGF)